The Efficiency of Education Expenditure in Portugal
63 Pages Posted: 14 Feb 2006
Date Written: December 1999
This paper assesses the efficiency of education expenditure in Portugal and delineates a possible agenda for reform. Portugal's low educational performance has coincided with the highest level of primary and secondary education expenditure to GDP in the Organization for Economic Cooperation and Development (OECD), suggesting considerable inefficiency. Empirical results from the application of a nonparametric technique for production frontier estimation (Free Disposable Hull analysis) support this view. Among the reforms that could be considered to raise educational efficiency are the adoption of a goal-oriented management and incentive system; establishment of minimum student/teacher ratios; and an easing of employment and work rules governing public school teachers.
Keywords: Fiscal Policy, Education, Free Disposable Hull Production Frontiers, Portugal
JEL Classification: C14, H52, I2
Suggested Citation: Suggested Citation